Method of printing MICR encoded negotiable instruments such as checks/drafts from facsimile transmitted checks

ABSTRACT

An improved method for accurately and correctly encoding and printing complete checks on blank paper sheets from graphic check images. The method includes inputting into a computer a graphic image of a check. Scanning the graphic image, in computer memory, and identifying the MICR character codes with their locations. Printing said MICR codes with magnetic ink in MICR fonts in a designated “clear band”. Reformatting the scanned graphic image with the MICR images deleted and printing the reformatted graphic image above the “clear band” to provide a negotiable check instrument.

CROSS-REFERENCE TO RELATED APPLICATIONS

This is a continuation of prior U.S. patent application Ser. No.11/825,113, filed on Jul. 2, 2007, which is a continuation of Ser. No.11/219,641, filed on Nov. 4, 2005, now U.S. Pat. No. RE39,875 issuedOct. 9, 2007, which is a reissue application of U.S. patent applicationSer. No. 09/793,474, filed on Feb. 26, 2001, now U.S. Pat. No.6,697,512, issued Feb. 24, 2004, which is a continuation of U.S. patentapplication Ser. No. 08/373,118, filed on Jan. 17, 1995, now U.S. Pat.No. 6,195,453, issued Feb. 27, 2001.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to imprinting completenegotiable instruments and more particularly pertains to a method ofencoding and printing complete authorized checks/drafts on blank papersheets from facsimile transmitted checks.

2. Description of the Prior Art

In the past as in the present the exchange of funds both personal andbusiness has been by negotiable instruments such as drafts and checks.Physical transmission and exchange of such instruments has been by mailor messenger. Such instruments for example, checks, must on their face,include at the least all the necessary information pertaining to theissuing bank and the drawer or payor of the check. In addition, thecheck also bears a series of magnetic ink characters identifying theissuing bank and the drawer and other information for later processingof the check by banks and the Federal Reserve System. The magnetic inkcharacters must be located within a specific area on the check andconform to specific standards. The payor fills in the check number, thedollar amount of the check, the name of the payee and the date as wellas signing the check.

In order to shorten the transit time and thereby hasten the exchange offunds it has been a common practice send the necessary instruments byovernight mail or some other costly delivery services.

Although all businesses and most homes have ready access to facsimilemachines, the use of such devices can not be employed for thetransmission of checks and drafts. The banking industry system requiresthat certain codes be present at the bottom of the instrument in orderto be accepted and processed by the banking system. These codes must beprinted in a magnetic ink or toner, be very precisely positioned on theface of the check instrument and be printed in a font which demandsgreater resolution and reliability then can be currently produced withany presently available facsimile equipment.

Specifically, in accordance with present standards, checks and othersimilar commercial documents are required to meet and conform to certainstandards. One such standard is Standard X9.27 entitled “PrintSpecifications for Magnetic Ink Character Recognition” and referred toas “MICR”. This standard is issued by the Accredited Standards Committeeon Financial Services under the procedures of the American NationalStandards Institute and Published by the X9 Secretariat of the AmericanBankers Association. The specification sets forth the specific typefonts and special toners that must be used in the printing of thesedocuments. Specification X9.13 entitled “American NationalSpecifications for Placement and Location of MICR Printing” imposesstringent requirements for the placement of the MICR characters onchecks. This specification delineates the very precise positioning ofthe MICR print characters relative to the edges of the check form. Thespecification also prohibits magnetic printing other than MICRcharacters within the character recognition reading area. The readingarea is defined as a “Clear Band (MICR) A Band 0.625 inch high, measuredfrom the aligning edge of the document, parallel to that edge andextending the length of the document. It is reserved for imprinting ofMICR characters.”

There are presently available computer software programs and publishedmaterial for converting facsimile images received on a telephone linedirectly into a computer memory. The received data facsimile signals areconverted into digital representations of rasterized images throughselected available electronic devices. In addition, currently availablecomputer software programs and methodology enable a computer to analyzedigital image representations and through the use of Optical CharacterRecognition (OCR) techniques to convert these images in ASCII or othercomputer code character representations. This technique is generallyused to bring facsimile transmissions into word processing and othersoftware without requiring separately keying of the information into thesystem.

Laser printer technology has advanced to the point at which specialtoners and fonts can be used to laser print checks that meet MICRstandards directly as outputted from a computer. Presently availablecomputer software programs are capable of printing MICR encoded checks.

In those situations where even overnight delivery is not sufficientlyfast, there are speedier services. One such service includes a serviceprovider acting on behalf of a client company. A sender wishing toconvey funds to the client company telephones the client company andverbally conveys the necessary bank information including processingcodes, all the information found on the face of a check andauthorization to draw a draft on the sender's bank. The service providerwill then generate a bank draft based on the telephoned informationagainst the sender's account and deposit the draft in the clientcompany's bank account.

The forgoing situation readily lends itself to the generation of anincorrect draft document occasioned by the verbal transmission of thecheck data. For example, the operation can generate a draft in the wrongamount or against an incorrect account both of which errors can createsevere problems for the parties involved. For these reasons it would bedesirable generate to the draft document without any verbalcommunication or additional input keying.

Recent technology has made available computer driven laser printerswhich are capable of printing special type font characters in magneticink using special toners. Such printing meets the MICR standard.Presently marketed laser printers produce high quality graphics withoutany noticeable distortion because they print using dots with extremelyclose spatial relationships to other dots on the same sheet. Therefore,laser printers are capable of extreme accuracy in the placement ofimages with respect to other images printed on the same sheet during thesame operation.

SUMMARY OF THE INVENTION

The present invention comprises a method of accurately and properlyprinting a check on a blank paper sheet based on a graphic imagerepresentation of an original check. The laserprinted check includes theproper and accurate positioning of specific magnetic ink characters onits face.

The method of the present invention can be embodied in a single computerprogram or in a series of inter-related programs. In its broadestaspect, the method includes (at least) the following steps 1) inputtinginto a computer a graphic image of a negotiable instrument (i.e. acheck) including MICR codes; 2) storing said image in a formatted imagefile in said computer; 3) scanning said image and identifying MICRcharacter codes and their respective locations; 4) laser printing saidMICR codes with magnetic ink, in MICR fonts in a designated “clear band”area; 5) reformatting said graphic image without the MICR charactercodes and 6) printing said reformatted image above said “clear band” ina position defined check zone to provide a negotiable instrument basedon the originally inputted graphic image.

Although it is believed that the foregoing steps are adequate toproperly practice the instant invention, additional steps can also beincluded to insure greater accuracy and prevent errors. Such methodwould include the following steps: 1) inputting into a computer agraphic image of a negotiable instrument (i.e. a check) including MICRcodes; 2) storing said image in a formatted image file in said computer;3) scanning said image and identifying MICR character codes and theirrespective locations; 4) identifying the MICR “routing marks” and theirrespective locations; 5) verifying the validity of the MICR numericalcharacter codes associated with the “routing marks” 6) laser printingsaid MICR codes with magnetic ink, in MICR fonts in a designated “clearband” area; 7) reformatting said graphic image without the MICRcharacter codes; 8) printing said reformatted image above said “clearband” in a position defined check zone to provide a negotiableinstrument based on the originally inputted graphic image; and 9) priorto printing, displaying an image of the negotiable instrument to beprinted for the purpose of correcting any errors.

The above described method has found utility in the rapid transfer andexchange of funds by facsimile transmission of negotiable instrumentssuch as checks. The facsimile transmitted check includes all thenecessary check data and, in addition, if required, an authorization bythe payor to permit the recipient or another to negotiate an instrumentbased on the transmitted check. The facsimile transmitted check image isreceived and inputted directly into a computer by available software.Appropriate computer software programs also residing in the computerfirst analyze the check image via OCR software in order to recognize andidentify the MICR codes associated with the transmitted facsimile check.The computer further includes MICR fonts as well as MICR printpositioning instructions. The MICR identified codes are sent to a laserprinter loaded with specifically formulated magnetic toner and MICRfonts. The laser printer then prints the MICR code information inconformity to the banking industry specifications.

The computer program deletes the original MICR code line from the storedreceived facsimile check image and then reformats and sizes theremaining check image while adding any other necessary data such asidentifying the resulting document as an instrument created based onpermission of the payor. The printer thereupon prints the reformattedcheck zone image above the MICR “clear band” code information. Thecomputer software can also be directed to display the draft documentprior to printing to permit the user to examine and confirm the MICRprinting and the legibility and the accuracy of the check data. Afterprinting the resulting document can be deposited in the recipient's bankaccount just as any other check or negotiable instrument.

Accordingly, it is an object of this invention to provide an improvedmethod for imprinting a check or other negotiable instrument on a blankpaper sheet from a facsimile transmitted image using a laser printer.

Another object of this invention is to provide a method for the printingof a check which conforms to banking industry standards from a facsimilegraphic check image.

Still another object is to provide an improved method for printing of acomplete check from a facsimile check without requiring additional inputdata keying.

A further object of the present invention is to provide a reliable,positive and low cost method for imprinting complete checks ornegotiable instruments from graphic check images.

Other objects and many of the attendant advantages of this inventionwill be readily appreciated as the same becomes better understood byreference to the following detailed description when considered inconnection with the accompanying drawings in which like referencesnumerals designate like parts throughout the figures thereof.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a representation of a facsimile transmitted check; and

FIG. 2 is a computer program flow chart suitable for practicing themethod of this invention;

DETAILED DESCRIPTION OF THE PREFERRED METHOD

There are currently available a multitude of devices and supportingsoftware programs for the transmission of facsimile messages andinformation from one computer to another computer. The transmittedinformation is generally in the form of a graphic representation and maybe displayed on the computer monitor for viewing and reading by anoperator. The illustration of FIG. 1 represents a check 10 which wasoriginally in a fill-in type check form with a MICR encoded line(magnetic ink) and thereafter filled-in by the payor. A copy of suchfilled-in completed check was facsimile transmitted from a firstcomputer and received by a second remote computer.

A valid check, as a minimum, should include the name of the payor 12,the institution against which the funds will be drawn 14, the checknumber 16, the date 18, transit number 19, name of the recipient to whomthe funds are transferred 20, the amount of the funds being transferred22 and 22 a, the signature of the payor 24, and the MICR codes 26associated with the payor's account. The MICR code line includesrepresentative “routing mark” 28 and 30 and an “OnUs” code symbol 32 allin accord with the American Banking Association standards. Referring nowto the flow chart of FIG. 2 which exemplifies the method of operationfor practicing the principle of the instant invention. The computerwhich is to receive the transmitted check facsimile is loaded with anumber of software programs in order to perform the necessary requiredmethod steps to carry out the function.

The start operation at 34 serves to initialize the Facsimile Receiveprogram and its included routines to provide automatic facsimilereceipt. The system at 36 waits for the receipt of a facsimile and whena facsimile is received it causes the graphic facsimile image to bestored in an appropriate graphic image file. Thereafter at 38 thecontents of the facsimile image file are passed to an OpticalRecognition Reader (OCR) program for processing. Software programs arecurrently available to perform the foregoing receipt and transferfunctions and operations. One such program is entitled VISUAL FAX™ andis distributed by Stylus Innovation, Inc. of Cambridge, Mass.

Upon receipt of the graphic image at 40, an OCR program is instructed toscan the image for the two MICR “routing mark” (American BankingAssociation [ABA] defined) codes. A suitable OCR program is onedistributed by MAXSOFT-OCRON, Inc. of Fremont, Calif. under the Recore®trademark. Decision box 42 examines whether the “routing marks” weredetected. If the marks were not detected then function box 44 isactivated to alert an operator that the received facsimile was not thatof a check. The operator can then treat the received fax as a regularmessage facsimile. If, however the “routing marks” were detected suchinformation is passed onto function box 46 where the positionco-ordinates of each “routing mark” are obtained.

Using the locations of the “routing marks”, the program at 48 isinstructed to examine the MICR numbers represented by the MICR codesbetween the “routing marks” and ascertain whether these numerical MICRcodes are valid according to ABA standards. The validity determinationmay include examining that the “check digit”, the number of digits andthe location of special characters.

The validity determination at 48 is applied to the decision box 50. Ifthe MICR is invalid then at 52 the operator is alerted to this fact andat that point can either manually correct the MICR or terminate theoperation. If the MICR is valid then the program at 54 is instructed toconstruct in a check image memory file the correct series of MICR codecharacters and their respective check locations in a linear array forsubsequent printing. A laser printer equipped with MICR magnetic tonerand With the MICR character font installed therein is used to print thecheck.

The image processing program at 56 defines in memory the two check zones(i.e. MICR line and the remainder of the check). At 58 the imageprocessing program reformats the entire check zone (i.e. resizes) andpositions the check zones above the previously defined MICR for printingto thereby provide a printable output check image. Prior to printing,the check image may be visually displayed at 60 to permit an operator toascertain whether it is correct. At 62 the remainder (reformatted checkzone) of the check image is printed above the previously printed MICRline and a copy faxed to the payor. The system then awaits notificationthe fax copy sent was received. Although the foregoing inventive methodhas been described with reference to a facsimile arrangement whereincommunications are conducted between two computers it also can beapplied under other circumstances. For example, where the receivedfacsimile of the check is received on a facsimile machine and a hardcopy (paper) is produced. The paper check image can then be scanned andthe resulting image inputted directly into the computer. It should benoted that the described method relies only on the graphic check imagebeing inputted into the computer for processing. It does not matter howor in what form the graphic image is applied to the computer. Obviouslymany modifications and variations of the present invention are possiblein the light of the above teachings. It is therefore understood that,within the scope of the appended claims, the invention may be practicedotherwise than specifically described.

1. A method of reproducing a check comprising: receiving at a computeran image representing a check and including a first portion thatincludes an image of codes in a MICR code line and a second portion thatincludes at least an image of a signature; the computer identifying asequence of the codes in the MICR code line; and printing a reproducedcheck by: printing, in a clear band area, the identified codes using inkand MICR fonts; and printing, outside the clear band area, at least thesecond portion of the image; wherein the reproduced check is anegotiable instrument suitable for automatic processing by a bankingsystem.
 2. The method of claim 1, wherein the second portion of theimage excludes the MICR code line.
 3. The method of claim 1, wherein theimage of the check is an electronically transmitted image received froma remote location.
 4. The method of claim 3, wherein the step ofidentifying the sequence of the codes, includes processing the image toidentify the sequence of the codes and their respective positions. 5.The method of claim 4, wherein the step of printing the sequence ofcodes includes the proper positioning, on the reproduced check, of theprinted ink MICR codes.
 6. The method of claim 3, further comprisingverifying the validity of at least part of the sequence of codes in theMICR code line prior to printing the reproduced check.
 7. The method ofclaim 1, further comprising displaying an image of check prior to beingprinted.
 8. The method of claim 1, wherein receiving the image comprisesreceiving a graphical image of unknown content, and wherein said methodfurther comprises: scanning the graphical image for one or more MICRrouting marks; and based on the presence of the one or more MICR routingmarks, identifying the image as an image representing the check.
 9. Acomputer program product for causing reproduction of a check, comprisinga computer readable storage medium comprising: a first set ofinstructions for causing receipt of an image representing a checkincluding a first portion that includes an image of codes in a MICR codeline and a second portion that includes at least an image of asignature; a second set of instructions for causing identification of asequence of the codes in the MICR code line; and formattinginstructions, for use in formatting for printing a reproduced check byprinting, in a clear band, the identified codes using ink and MICRfonts; and by printing outside the clear band area at least the secondarea of the graphic image; wherein the reproduced check is a negotiableinstrument suitable for automatic processing by a banking system. 10.The computer program product of claim 9, wherein the formattinginstructions include instructions for reformatting the second portion ofthe image to exclude the MICR code line.
 11. The computer programproduct of claim 9, further comprising instructions for verifying thevalidity of at least part of the sequence of codes in the MICR code lineprior to printing the reproduced check.
 12. The computer program productof claim 9, wherein receiving the image comprises receiving a graphicalimage of unknown content, and wherein said a first set of instructionsfurther cause scanning the graphical image for one or more MICR routingmarks and, based on the presence of the one or more MICR routing marks,identifying the image as an image representing the check.
 13. A methodof reproducing a check comprising: receiving by a computer an image of acheck including a first portion having MICR codes and a second portionthat includes at least a signature; the computer identifying a sequenceof the MICR codes; the computer verifying the validity of at least partof sequence of MICR codes; creating an image of at least the secondportion of the check; and printing a reproduced check by: printing, in aclear band area, the identified codes using ink and MICR fonts; andprinting, outside the clear band area, at least the second portion ofthe image, wherein the reproduced check is a negotiable instrumentsuitable for automatic processing by a banking system.
 14. The method ofclaim 13, further comprising detecting routing marks in the MICR codes.15. The method of claim 13, wherein the image of receiving the checkincludes receiving an image of the check electronically transmitted froma remote location.
 16. The method of claim 15, wherein the step ofidentifying the sequence of the codes, includes processing the image toidentify the sequence of the codes and their respective positions. 17.The method of claim 15, further comprising displaying an image of checkprior to being printed.
 18. The method of claim 14, wherein the step ofprinting the sequence of codes includes the proper positioning, on thereproduced check, of the printed ink MICR codes.
 19. A method ofreproducing a check comprising: a computer receiving an image of unknowncontent; scanning the image for one or more MICR routing marks; based onthe presence of the one or more MICR routing marks, the computerdetermining that the image represents a check and includes a firstportion that includes an image of codes in a MICR code line and a secondportion that includes at least an image of a signature; the computeridentifying a sequence of the codes in the MICR code line; storing inmemory the sequence of the identified MICR codes; and storing in memorythe second portion of the received check image.
 20. The method of claim19 further comprising: printing a reproduced check by: printing, in aclear band area, the sequence of identified codes using ink and MICRfonts; and printing, outside the clear band area, at least the secondportion of the image; wherein the reproduced check is a negotiableinstrument suitable for automatic processing by a banking system. 21.The method of claim 20, wherein the printing of the sequence of codesincludes proper positioning, on the reproduced check, of the MICR codes.22. The method of claim 19, wherein the second portion of the imageexcludes the MICR code line.
 23. The method of claim 19, wherein theimage of the check is an electronically transmitted image received froma remote location.
 24. The method of claim 19, wherein the identifyingof the sequence of the codes, includes processing the image to identifythe sequence of the codes and their respective positions.
 25. The methodof claim 19, further comprising verifying the validity of at least partof the sequence of codes in the MICR code line.
 26. The method of claim19, further comprising displaying an image of the reproduced check. 27.The method of claim 19 further comprising: storing information suitablefor printing a reproduced check wherein the stored information issuitable for printing, in a clear band area, the sequence of identifiedcodes using ink and MICR fonts; and suitable for printing, outside theclear band area, at least the second portion of the image such that thereproduced check is a negotiable instrument suitable for automaticprocessing by a banking system.
 28. The method of claim 18, wherein theidentifying includes Optical Character Recognition.
 29. One or morecomputer readable media storing instructions that, when executed,perform a method for causing reproduction of a check, said methodcomprising: receiving an image having unknown content; scanning theimage for one or more MICR routing codes; based on the presence of theone or more MICR routing code, determining that the image represents acheck including a first portion that includes an image of codes in aMICR code line and a second portion that includes at least an image of asignature; identifying a sequence of the codes in the MICR code line;storing in memory the sequence of the identified MICR codes; and storingin memory the second portion of the received check image.
 30. Thecomputer readable media of claim 29, wherein the method furthercomprises: formatting instructions for printing a reproduced check byprinting, in a clear band, the identified codes using ink and MICRfonts; and by printing outside the clear band area at least the secondportion of the graphic image; wherein the reproduced check is anegotiable instrument suitable for automatic processing by a bankingsystem.
 31. The computer readable media of claim 30, wherein theformatting instructions include instructions for reformatting the secondportion of the image to exclude the MICR code line.
 32. The computerreadable media of claim 29 further comprising instructions for verifyingthe validity of at least part of the sequence of codes in the MICR codeline.
 33. The computer readable media of claim 29, wherein theidentification includes Optical Character Recognition.